EQUINIX INC Quarterly Report for Q1 Ended Mar 31, 2012

Summary

Equinix Inc. (EQIX) reported solid financial results for the quarter ended March 31, 2012, with revenues increasing by 25% year-over-year to $452.2 million. This growth was driven by strong performance across all geographic regions, particularly in the Americas, which benefited from the ALOG acquisition. The company also saw a significant improvement in operating income, up 42% to $101.1 million, and adjusted EBITDA, which rose 29% to $215.2 million. Key financial highlights include a robust increase in cash and cash equivalents, up to $632.9 million from $278.8 million at the end of the previous year, supported by strong operating cash flows and effective investing activities. The company continues to invest in expansion projects, with significant capital expenditures and purchase commitments noted. Despite a substantial debt load, Equinix maintains a positive outlook, with plans to become free cash flow positive in 2013.

Key Highlights

• 1Revenue increased 25% year-over-year to $452.2 million, driven by growth across all geographic segments.
• 2Operating income grew 42% to $101.1 million, demonstrating improved operational efficiency.
• 3Adjusted EBITDA increased 29% to $215.2 million, indicating strong operational performance excluding non-cash items.
• 4Cash and cash equivalents significantly increased to $632.9 million, up from $278.8 million at the end of 2011, reflecting healthy cash generation.
• 5Capital expenditures remain substantial, reflecting ongoing investment in data center expansion and infrastructure development.
• 6The company successfully managed its debt, with a significant portion of convertible notes converted in April 2012.
• 7Customer count grew 19% year-over-year, indicating strong market demand and successful customer acquisition.

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